Santander offer financial hangover cure
Santander this week launched the lowest loan rate on the market, as well as bringing back their £100 current account switching incentive.
Commenting on the move Stefan Maryniak, personal finance expert at uSwitch.com, says: "In time to cure any New Year financial hangovers, Santander has launched the cheapest loan on the market in two years. It is no coincidence that this is happening just after Christmas when people are revising their finances and looking for some quick win loans. With a rate of 7.3% for borrowing over £7,500 and an equally competitive rate of 8.5% for loans over £5,000, Santander offers a relatively low cost solution for those struggling with Christmas costs, making a big purchase or wanting to consolidate existing debt.
"The offer is only available to new customers, but Santander has also brought back its £100 current account switching offer, making it a great time for consumers to switch. Not only would they get a ‘best buy' bank account with a competitive 5% credit interest rate, but it also means that they could take advantage of this new low loan rate. As with all financial products, consumers should be aware that there may be conditions attached to getting the best deals, such as minimum monthly deposits, so they should always read the small print first. Plus of course, there is no guarantee that having switched your bank account you will actually qualify for the lending rate so it's worth discussing this with a Santander adviser first.
"We would however urge people to think carefully about any borrowing. Consumers should be sure they really need to do it, borrow as little as possible and budget for any repayments. They should make sure a loan is the best product - could a credit card with a good balance transfer offer or introductory offer on new purchases work out better? Barclaycard currently offers 0% on balance transfers for 17 months.
"But if a loan is the best option, taking advantage of the £100 switching incentive and the new low interest rate loan could help set you up for a successful financial year. January is the month in which the banks fight it out to win new lending business so consumers should use it to their advantage by shopping around and, of course, only borrowing responsibly."